How much do insurance companies pay for pain and suffering?
Personal Injury Claims in Atlanta, Georgia
If you sustained an injury due to another person’s negligence or careless actions, you might be able to secure financial compensation from the liable party’s insurance company through a third-party claim.
To successfully file an insurance claim you will have to prove that the at-fault party caused your injuries and present documentation showing the losses stemming from your accident. The insurance company could reimburse you for medical bills and lost wages, as well as compensate you for your pain and suffering.
How Insurance Companies Calculate Your Pain & Suffering
There is no set rule regulating how an insurance company must calculate pain and suffering in injury claims. However, two strategies are frequently used to determine the value of your intangible damages: the “Multiplier Method” and the “Per Diem” approach.
The Multiplier Method: One way to calculate the pain and suffering portion of your claim is through the multiplier method. This simple approach multiplies your total damages by a factor typically ranging from 1.5 to 5.
For instance, imagine you were involved in a car accident that broke your arm and the total economic damages of your claim were $3,000. An insurance company could multiply that by three (or another reasonable factor) and determine that $9,000 is a reasonable total for your emotional suffering.
The Per Diem (Daily Rate) Method: The second approach is the Per Diem method which determines a reasonable daily rate for living with your injuries and then multiplies that rate by the number of days it took you to recover. The daily rate can be challenging to determine, but it’s common to use the patient’s regular wages since healing after an accident is at least as emotionally draining as attending work every day.
While the “Multiplier” and “Per Diem” method offer reasonable approaches to calculating pain amd suffering, insurance companies are under no obligation to use them. Instead, many insurance providers use computer programs to calculate this portion of your claim. These programs will often determine a value based on the type of injury and the kind of medical treatment received.
How Much is Your Pain and Suffering Worth?
The value of the pain and suffering portion of your settlement depends on the injury itself and the evidence documenting your emotional losses. The more evidence you have to support your claim, the better your chance will be of recovering the maximum compensation for your injuries.
Some examples of viable documentation include diaries recording your physical and emotional hardships, photographs of the injury, witness accounts, and proof of medical treatment.
Is Your Insurance Settlement Fair?
If the insurance provider offers a settlement that provides for your pain & suffering, you want to make sure that it is a reasonable amount before accepting.
If they used the multiplier or per diem method to determine a ballpark figure, your pain and suffering payment is off to a good start. Next, you should consider any additional circumstances that warrant an increase of that amount. For instance, if your injury led to significant facial scarring, it may be reasonable to increase your damages.
On the other hand, if the insurance company uses a computer program to calculate your pain and suffering, hiring a personal injury lawyer in Atlanta could help you determine whether the offer is fair.
Regardless of how the insurance company will base your settlement, staying organized, informed, and attentive during this process will help you recover a reasonable payout for your injuries.